IInflation and growth concerns weighed on US stock markets on Monday. Before the international central banker meeting in Jackson Hole, Wyoming, which began on Thursday, prices went down again.
After a weak start, the leading index Dow Jones Industrial increased its minus and lost 1.91 percent to 33,063.61 points in the end. The other indices fared even worse: The market-wide S&P 500 closed 2.14 percent lower at 4137.99 points, which means the largest percentage daily loss in more than six years. The technology-heavy Nasdaq 100 even lost 2.66 percent to 12,890.54 points.
The market is speculating that the US Federal Reserve will continue to pursue a strict tightening course in order to get high inflation under control. The appearance of the head of the US central bank is awaited with particular excitement in Jackson Hole. Analyst Craig Erlam of broker Oanda believes Jerome Powell will reiterate what he and his colleagues have been saying publicly of late without giving too much away before the Fed’s September meeting.
Potential takeover of billions in focus
On the US stock exchanges on Monday, the focus was on a possible billion-dollar takeover in the healthcare industry. The Wall Street Journal reported that the world’s largest online retailer Amazon, health insurer Unitedhealth and infusion provider Option Care Health are planning bids with pharmaceutical retailer CVS Health for home health care provider Signify Health. Its shares then shot up by almost a third. Of the shares of the four alleged takeover candidates, Amazon fell the most in the weak tech environment at 3.6 percent, while Option Care Health closed minimally in the black.
Shares in US cinema operator AMC Entertainment fell another 42 percent given the possible bankruptcy of Cineworld. The impending insolvency of the British competitor has weighed heavily on both stocks for several days. This Monday, the new AMC preferred shares were also traded for the first time on the New York Stock Exchange (NYSE) under the ticker symbol “APE” – they closed after prices of up to 10.50 US dollars, six dollars still below their first price. The papers should have the same voting rights as the old share certificates. One expert commented that the issue of the new shares was something between a stock split and a dividend.
Bed Bath & Beyond shares also continued their recent slide, down more than 16 percent. They fell more than 40 percent on Friday after it was announced RC Ventures, the company owned by activist investor Ryan Cohen, had sold its entire stake in the home goods retailer for $178 million.
Ford and Tesla with minus
Otherwise, Ford titles fell by five percent. The automaker said it would appeal a $1.7 billion judgment in connection with the fatal rollover of an F-250 pickup truck. Ford also wants to cut around 3,000 jobs in North America and India to cut costs and invest more money in its electric offensive.
Tesla was down 2.3 percent after CEO Elon Musk announced a price increase for the fully autonomous driving package. Accordingly, the cost of the electric car manufacturer’s Full Self-Driving (FSD) should rise to $15,000. At the beginning of the year, the price was still around $10,000.
The euro continued its descent and cost less than one dollar for the first time since mid-July – the last price paid in New York was 0.9943 dollars. The European Central Bank had previously set the reference rate at 1.0001 (Friday: 1.0054) dollars; the dollar had thus cost 0.9999 (0.9946) euros.
US Treasury bond prices eased somewhat after a little changed start. The futures contract for ten-year Treasuries (T-Note Future) fell by 0.29 percent to 117.77 points. In return, the yield on ten-year government bonds rose to 3.03 percent.